sap ewm overview

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SAP Extended Warehouse Management (SAP EWM) Andres Botero, Solution Marketing May 15-19 th , 2011

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Page 1: SAP EWM Overview

SAP Extended Warehouse Management

(SAP EWM)Andres Botero, Solution Marketing

May 15-19th , 2011

Page 2: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 2

SAP Extended Warehouse Management

Optimized Warehouse Productivity, Utilization and Efficiency

What is EWM?

It is a best-in-class warehouse management solution designed to manage & track logistics execution processes

It offers flexible, automated support for processing various goods movements and for managing stocks in a whse.

In 1 solution provides labor management, slotting, advanced optimization techniques, connection to automation

How do companies benefit from EWM?

High warehouse productivity / efficiency

High inventory accuracy

Reduced labor costs

Better customer service

What are key capabilities of EWM?

Multi customer warehouse

Flexible modeling of warehouse processes

Stock and process transparency

Optimization in storage planning and process execution

Seamless integration of Automation (RF, RFID, Pick-by-Voice, …)

Integration in the overall SAP Logistics Solution

Page 3: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 3

Our Warehouse ExperienceSAP: 17 Years Warehouse Experience

1975

1970 1980 1990 2000 2010

First software

systems support

warehouse operationsOptimization

strategies

Connecting to

relational

databasesWireless

data

transfer

EDI

Connecting

Pick-by-light

systems

First RFID

eSOA

Browser

Technology /

Pick by voice

R/3

Release

2.0/2.1

R/3

Release

3.0/3.1

R/3

Release

4.0

R/3

Release

4.5

R/3

Release

4.6

R/3

Release

4.7 EE1

R/3

Release

4.7 EE2

SCM

EWM

5.0

SCM

EWM

5.1

SCM

EWM

7.0

Storage Units

Parallel Process-ing

Integration

PP

QM

LIS

Rough Workload Estimate

Picking Waves

Two Step picking

Warehouse Monitor

HR Integration

DecentralWM

Prototype of RF

Native RF /SAP Console

HUM

Packing

Task & ResourceMgmt

ERP EWM

XD

YM

VAS

Slotting

Rearrange-ment

Warehouse Orders

Warehouse Monitor

Internal Routing

Labor Mgmt

MFS

WH Cockpit

RFID Integr.

Batch Mgmt

Serial Nr

Catch Weight

ESA

Graphical WH Layout

Production Supply

Merchandise Distrib. XD

Task Interleaving

Evolution of Warehouse Operations

SCM

EWM

7.0

Ehp 1

Integration to Trans-portationProcesses

Enhance-ments to Claims & Returns

BOBJ Content

Enterprise Focus Network FocusEvolution of SAP Solutions

Page 4: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 5

“From this retail customer's perspective [Indigo Books], SAP has narrowed (closed?) the

functionality gap with best-of-breed WMS solutions. This milestone is reflected in the hockey-stick

growth in EWM implementations SAP experienced in 2009 compared to previous years.”

“Case Studies from SAP Insider: Indigo Books and Newell Rubbermaid” by Adrian Gonzalez,

ARC in Logistics Viewpoints Blog, 03/2010

SAP EWM has closed the gap with Best of Breeds and is

the way to go for SAP customers

“Some of these [SAP EWM] customers claim that the functionality is on par or exceeds that of well

known best of breed solutions. They [SAP] are poised for very fast growth as they penetrate their

installed base.”

“Warehouse Management Systems Worldwide Outlook” by Steve Banker, ARC Advisory Group , 07/2010

“For SAP users considering upgrading WMS, the Extended Warehouse Management (EWM)

application is to the point where it at least deserves to be put on the short list. EWM has more

functionality, and is far more flexible.”

Dwight Klappich, Gartner quoted in article “SAP shops holding onto SAP WMS, but there are benefits to upgrading”

by Marc Fortier, Search SAP 07/15/2010

“The offering was designed to provide functionality for complex warehouses and increasingly

broad capabilities, such as yard management, slotting, material flow solutions and engineered

labor standards.”

“Magic Quadrant for Warehouse Management Systems” by Dwight Klappich, Gartner, 07/29/2010

Page 5: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 6

EWM Adoption

Status: July 7, 2011

EWM Live Customers and Sites

0

20

40

60

80

100

120

12/31/07 12/31/08 12/31/09 12/31/10

Live Sites Live Customers

Q2

YoY quarterly

growth

128%

Page 6: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 7

SAP Extended Warehouse ManagementSelected implementing Customers

Page 7: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 8

Select Active SCM EWM References

June 2011

Customer Industry Market

SegmentCountry Release Partner # of live Warehouses

Artoni Trasporti Transportation LE Italy 7.0 SAP Consulting 1

Bombardier A&D LE Canada 7.0 InfoLogix 4

Cat Logistics Automotive LE USA 7.0 Cat, SAP Consulting and Deloitte 2

Celesio AG Wholesale LE Germany 5.1 IGZ 3

Coke Sweden Consumer Products LE Sweden 5.1 Catalyst 1

Dansk Supermarket Retail LE Denmark 5.1 Dansk 3

EvoBus GmbH Automotive LE Germany 7.0 SAP Consulting 2

F Hoffman La Roche Life Science LE Switzerland 7.0 SAP Consulting 1

Ferrero Consumer Products LE Germany 7.0 Prismat ,Atos, Accenture, TSF and SAP 8

Ford Motor Company Automotive LE USA/ France 5.1 SAP Consulting 1

Humana Milchindustrie Consumer Products LE Germany 7.0 IGZ 2

Indigo Books and Music Retail LE Canada 7.0 SAP 1

Komplett Services Retail LE Norway 7.0 Ciber and SAP 1

Maple Leaf Foods Consumer Products LE Canada 7.0 SAP 16

Sandisk High Tech LE USA 5.1 CDC Software 1

SFS Services AG Metal LE Switzerland 5.1 Dematic and IGZ 2

Sony Electronics High Tech LE USA 5.1 IBM and SAP Consulting 9

WM Group Logistics ME Germany 5.1 Logiplus 1

Wollschlager Wholesale LE Germany 5.1 Prismat and SAP 1

Page 8: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 9

Countries with active EWM deployments

July 2011

Page 9: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 10

Functional Comparison EWM and ERP WM

Page 10: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 11

Functional Comparison EWM and ERP WM

ERP WM

Page 11: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 12

Functional Comparison EWM and ERP WM

EWM

Page 12: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 13

Are you facing these Challenges?

Exemplary Situations when SAP EWM will help immensely. RDS speeds up the process.

Do you…

Have a full or partially automated warehouse?

Have multiple warehouses and material flows between them?

Evaluate the implementation of a SAP decentralized WM?

Have a legacy WMS which can not cover business requirements and needs

replacement?

Have a legacy WMS and is facing high effort for monitoring and adjusting

interfaces?

Have an existing SAP WM / SAP LES which is highly modified and enhanced?

Require a solution for business continuity, i.e. warehouse processes need to be

performed in case of an ERP downtime?

Page 13: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 14

SAP Extended Warehouse ManagementSolution Overview

Inbound Processing Storage and Operations Outbound Processing

Co

re W

are

ho

use O

pera

tio

ns a

nd

In

ven

tory

Man

ag

em

en

t

Receive ASN data

ASN Validation & Correction

Transporation Unit Arrival

Manage Transportation Unit

Goods Receipt

Putaway Bin determination

Unload Transportation Unit

Internal Routing

Slotting

Deconsolidation

Putaway

Returns / Reverse Logistics

Rearrangement Order deployment

Inventory Counts / Record Accuracy

Replenishment

Freight Order Management

Route Determination

Wave Management

Picking Bin Determination

Warehouse Order Creation

Work Assignment

Picking

Packing

Staging

Loading & Goods Issue

Kit-to order

Transportation Cross Docking

Picking fr. Inb./ Push Deployment

Yard Management

Packaging Specification

GTS Integration

EH&S Integration

Integration to QIE

RF support for all exec.processes

Batch Management

Material Flow System

Serial Numbers

Cro

ss

Pro

cesses

Su

pp

ort

ing

Fu

ncti

on

s

SAP SCM-EWM 5.0.

Goods Receipt - Optimization

Kit-to stock

Manual outbound deliveries

RFID Enablement

Warehouse Cockpit

eSOA enablement

Catch Weight

Labour Management

SAP SCM-EWM 5.1.

Production Supply

Opportunistic Cross Docking

Merchandise Distr. X-Docking

Task Interleaving

Execution Constraint

Semi-System-Guided work

Graphical Warehouse Layout

SAP SCM-EWM 7.0.

Page 14: SAP EWM Overview

© SAP AG 2009. All rights reserved. / Page 15 Internal

Page 15: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 27

SAP brings together software and services in an offering

that gives you essential warehouse management functionality quickly and affordably

Preconfigured software:

1 to 6 critical, popular processes with several variations

provided

Rapid delivery in 20-24 weeks:

accelerators, RDS methodology

An affordable, well-priced solution:

fixed-price for fixed scope, variable license pricing

according to your needs

A clear path to your full EWM vision:

use the pre-configured scenarios as they are or as a big

stepping stone

Preconfigured EWM Software and Services Enabling

Rapid Deployment

Page 16: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 28Internal

Solution at-a-GlanceSAP Extended Warehouse Management rapid-deployment solution

Business Requirement Solution Target Market

What is my pain?

Automating mission critical warehousing processes

Processes closely aligned with physical layout

Complex processes with high degree of variations

Complex task of implementing a warehousing solution within a fixed period

Resource management targets

What are my needs?

Functioning warehousing system without spending too much effort & time

Basic warehousing processes running smoothly with experts’ involvement

Opportunity to adopt next generation warehousing automation techniques & achieve continuous improvement in supply chain execution

What will excite me?

Accelerated and quality rich warehousing implementation

Lower TCI, quicker ROI & maximum returns on underlying ERP / process platform

Improved resource utilization

Business KPI‟s

Warehouse Shrinkage

On-Time shipment completion

Timely product availability for sales

Inventory accuracy

Visibility and reduction of Warehousing costs as % of gross sales

Solution DescriptionThis SAP Rapid Deployment Solution provides easily adaptable & flexible

preconfiguaration for critical fixed scope warehousing processes with

predefined services & fixed consulting days to make it ‘ready to run‘ within a

fixed duration. Customers shall witness up & running predefined scope

within a promised horizon with supreme quality.

Business ProcessesSimple inbound, complex inbound, simple outbound, complex outbound,

physical inventory, cycle count, automatic replenishment, simple scrapping,

customer returns.

Technical Components

SAP Extended Warehouse Management 7.0, SAP ERP6.0 EHP 4

IndustryAll industries

Type of Customer/Prerequisite

Existing ERP Installed Base

EWM 7.0 installed Base

Target Geography■ Global

General Availability■ Available

SAP Contact

[email protected]

SAP Extended Warehouse Management (EWM) rapid-deployment solution is essential software combining fixed scope, predefined services at a

predictable price with the flexibility for future extension.

Page 17: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 29

SAP

CRM Rapid

Deployment

Solution

SAP EWM Rapid Deployment SolutionDetailed Scope - Pre-Configured Critical Warehousing Business Scenarios

Inbound

Inbound Process with no Packing Information from Vendor (Automatic WT, Manual GR)

Inbound Process with no Packing Information from Vendor - Pack for Put away

Outbound

Outbound Process Using Pick-HUs as Shipping HUs

Outbound Process Using Wave, Pick-HU, Packing, Staging, and Loading

Inventory Counting

Periodic Physical Inventory

Cycle Counting

Replenishment

Automatic Replenishment

Planned Replenishment

Customer Returns

Customer Returns with Quality Inspection

Customer Returns with Scrapping

Scrapping

Scrapping due to Best Before Date/Shelf-Life Expiration Date

Page 18: SAP EWM Overview

© 2011 SAP AG. All rights reserved. 34

EWM RDS = Immediate ValueYou Get What You Need to Run Your Business „Out-of-the-box‟

Clearly defined scope

Includes pre-configured content and knowledge transfer to project team

Fast-track methodology

Enables you to go live in 20-24 weeks

Powerful warehousing solution, delivered out-of-the-box based on EWM 7.0

Start fast, with what’s most important, and expand later

Seamless access to ERP delivery information

Value Adding Quick and Lean

Flexible pricing – ‘only pay for what you need’

Attractive fixed-price services

Reduced resource requirement from Business and IT

Cost-effective

Customer

Sales

Performance

Management

Sales

Analytics

Sales

Contracts

Management

Quotation

Management

Order Capture

Opportunity

Management

Activity

Management

Account &

Contact

Management

Sales

Planning &

Forecastin

g

Page 19: SAP EWM Overview

Thank You!

Contact information:

Andres Botero

Senior Director, Supply Chain Execution

[email protected]